Self Employment Tax Calculator
When you work for yourself you pay both halves of Social Security and Medicare, which is 15.3 percent of net profit. The calculation applies a 92.35 percent base and a wage cap, and half of the result is deductible.
Total self-employment tax
$8,477.73
- SE tax base (92.35%)
- $55,410.00
- Social Security tax (12.4%)
- $6,870.84
- Medicare tax (2.9%)
- $1,606.89
- Additional Medicare (0.9%)
- $0.00
- Deductible on the return (one half)
- $4,238.87
- Effective rate on profit
- 1412.95%
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
SE tax = 12.4% x min(base, wage base) + 2.9% x base, where base = profit x 92.35%
- profit
- Net profit from self-employment
- base
- Profit multiplied by 92.35 percent
- wage base
- Cap on earnings taxed for Social Security
- deduction
- Half the SE tax, deductible on the return
How to check the result by hand
- 1
Start from net profit
Use profit after business expenses, not gross revenue. Expenses reduce the base and therefore the tax.
- 2
Apply the 92.35 percent base
Multiply profit by 0.9235. This adjustment accounts for the employer half that would not be taxable income to an employee.
- 3
Charge Social Security up to the wage base
Multiply the smaller of the base and the wage base by 12.4 percent. Earnings above the base escape this portion.
- 4
Charge Medicare on the whole base
Multiply the base by 2.9 percent. Medicare has no cap, and an additional 0.9 percent applies above a high threshold.
- 5
Halve the total for the deduction
Half of the SE tax is deductible above the line, reducing income tax as well as the SE tax itself.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate Self Employment Tax page.